Is Jernigan Capital Inc (JCAP) a Good Stock To Buy?

Now, key money managers were leading the bulls’ herd. Cannell Capital, managed by J. Carlo Cannell, initiated the biggest position in Jernigan Capital Inc (NYSE:JCAP). Cannell Capital had $1 million invested in the company at the end of the quarter. Mark T. Gallogly’s Centerbridge Partners also made a $0.9 million investment in the stock during the quarter. The only other fund with a brand new JCAP position is Emanuel J. Friedman’s EJF Capital.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Jernigan Capital Inc (NYSE:JCAP) but similarly valued. These stocks are GTx, Inc. (NASDAQ:GTXI), Arowana Inc. Ordinary Shares (NASDAQ:ARWA), Rick’s Cabaret Int’l, Inc (NASDAQ:RICK), and Atlantic Alliance Partnership Corp (NASDAQ:AAPC). All of these stocks’ market caps match JCAP’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $14 million. That figure was $7 million in JCAP’s case. Rick’s Cabaret Int’l, Inc (NASDAQ:RICK) is the most popular stock in this table. On the other hand GTx, Inc. (NASDAQ:GTXI) is the least popular one with only 4 bullish hedge fund positions. Jernigan Capital Inc (NYSE:JCAP) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RICK might be a better candidate to consider a long position.